A Manufacturer Claims That Less Than 1% of All His $\ge$

question 101

Multiple Choice

A manufacturer claims that less than 1% of all his products do not meet the minimum government standards. A survey of 500 products revealed ten did not meet the standard.

• A) The null hypothesis is p \(\ge\) 0.01. The alternate hypothesis is p < 0.01
• B) The null hypothesis is p = 0.01. The alternate hypothesis is p > 0.01
• C) The null hypothesis is p \(\ge\) 0.01. The alternate hypothesis is p > 0.01
• D) The null hypothesis is p = 0.01. The alternate hypothesis is p \(\neq\) 0.01
• E) The null hypothesis is p < 0.01. The alternate hypothesis is p \(\neq\) 0.01

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Definitions:

Cause-And-Effect Relationship

The principle that an action (cause) results in a certain response or outcome (effect), often used in scientific and social studies.

Cost Pools

Groupings of individual costs typically according to function or department, allowing for more effective overhead cost allocation.

Traditional Costing Systems

Accounting methods that allocate production costs to products based on machine hours, labor hours, or material costs.

Overhead Costs

Expenses not directly tied to production such as rent, utilities, and office supplies.